I think that what happened in the 20/80 business rule, is that the 20% that were real producers started their on hedge funds. Now, quite possibly, in time, that same rule will apply to them and their best 20% will take away the money from the lesser 80%. (g). I don't know which companies constitute your 150 stock where short capital might be mal invested, I know that my "universe" (about the same size) undergoes constant shift from value to excess valuation over a period of time, some time spans quite short (take EMLX' trip from $9 to $40 plus in three months late last year).
Zeev
In edit, GNSS still available here at $8.80, market cap $260 MM, "normal sales rate" $250 MM pls. Book value $5.60, recent growth rate, probably in the 40% plus, notwithstanding the current fiasco. A prisitne balance sheet, with no goodwill nor any debt (well $90,000 which is too low, IMHO) Earning power well in excess of a buck per share once inventory problems get straighten up. I think this is an uncommon value, but that is the job of a bear market, create uncommon values and sometimes ridiculously uncommon values. |
